If a company makes three entries into the cash receipts journal for cash received from customers paying on account of $500, $750, and $1,000 during the month, and during the same month has to refund $50 due to a customer overpaying, what is the balance of the cash receipts journal at the end of the month?

To solve add: $500 + $750 + $1000 = $2,250 There is a $50 refund that happened the same month because the customer over payed. If there is a refund, it comes off of the next months Accounts Payable instead of the current months cash journal. Due to them refunding, it will be deducted off of the sales in the following month so the company will be negative until they make their first sale over $50.

A) March 1, received note receivable from Bynum Company

Dr Note receivable 60,000

    Cr Accounts receivable 60,000

B) March 16, received note receivable from Solo Company

Dr Note receivable 25,000

    Cr Accounts receivable 25,000

C) April 30, Bynum Company's note is dishonored

Dr Accounts receivable 60,600

     Cr Notes receivable 60,000

     Cr Interest revenue 600 ($60,000 x 6% x 2/12)

D) May 17, Solo Company's note is dishonored

Dr Accounts receivable 25,375

     Cr Notes receivable 25,000

     Cr Interest revenue 375 ($25,000 x 9% x 2/12)

E) July 29, cash is collected from Byrum Company

Dr Cash 60,900

    Cr Accounts receivable 60,600

    Cr Interest revenue 300

F) July 29, Solo Company's debt is written off

Dr Allowance for doubtful accounts  25,375

    Cr Accounts receivable 25,375